The Big Apple is on the hot seat again! Or, hot water. This is because Lyft and Uber have sued New York City over blocking the driver retention law. RSF has more!
The driver retention law, not the 1st case
First, to provide context, the driver retention law, restricts big ridesharing companies like Lyft and Uber from deactivating their drivers without a “bonafide economic reason” or “just cause.” This also mandates a 14-day notice period if the deactivation needs to be done.
This isn’t the first-time that ridesharing companies have sued New York City. In a previous report here on Ridesharingforum, Uber and DoorDash sued the city for requiring apps to ask customers to tip upfront.
According to the lawsuit filed several weeks ago, DoorDash and Uber are stating that the new ruling violates their constitutional rights, since asking customers to tip earlier will prompt them to choose other delivery apps, making deliveries less affordable, as a result. This is also in lieu of New York requiring an hourly minimum wage for delivery workers. Things happening in the New York City government, eh?
Fresh case vs. New York City
This time, Lyft joins Uber in suing the Big Apple to block a new ruling that would force them to keep bad drivers who threaten the public and passenger safety on their apps. The Lyft lawsuit was filed late Wednesday in the Manhattan federal court, 24 hours after Uber sued.
They are challenging the driver retention law, which generally prevents large ridesharing apps from dismissing drivers without a just cause.
Lyft and Uber are saying the law targeting “wrongful deactivations,” the similar kind to when DoorDash and Uber sued the city, violets their due process and free speech rights under the Constitution of the USA.
They are also saying the law threatened irreparable harm by undermining their goodwill and reputation while keeping unsafe drivers under their care, including those who would find themselves in unscrupulous deeds.
While Uber called the law “reckless,” Lyft called it “hazardous.”
However, it would take effect this July 28th, after the overwhelming overriding of the veto it went through.
Lyft and Uber, which are both headquartered in San Francisco, have faced backlash that they do not do enough to stop drivers who abuse passengers and commit fraud. These ridesharing apps have received their fair share of lawsuits, too, in the past,
As they challenge the upcoming law, Lyft and Uber objected to the requirement telling them to give drivers 14 days’ notice before letting them go, similar to the previous conflict with food delivery apps and delivery staff.
They also objected on privacy grounds to requiring passengers to detail alleged misconduct to accused drivers, and objected to a heightened burden of proof when defending against drivers who challenge their deactivations in court or arbitration.
Julia Menin, the City Council Speaker, alongside Council Member Shekar Krishnan, the main sponsor of the law, stated they are anticipating the law to be upheld in court. For more ridesharing news, keep it locked here on the RSF site!